My son has registered a flat at Bangalore on his name. He has paid Rs 1.00 lakhs and Registration charges & stamp duty. I, as father, paid Rs 46.00 lakhs to builder directly on his behalf. Total cost of flat is Rs 47.00 Lakhs and registration documents are my son's name. I do not have any dispute with him and my willingness I paid this amount. Please clarify on the following:1) Is my son has all rights on the property having paid only Rs 1.00 lakh.2) Is it attract any penalty under Benami transactions under new Benami amendment law?3) Can I treat this amount as loan to my son? Is any loan document to be signed and to register?4) Can I treat this as Gift to him.5) Is any other taxation issues is arise on this payment of Rs 46.00 lakhs paid to builder on his behalf?

The payment of Rs46.00 Lakhs is out of my retirement & savings funds. I have choosen to pay directly to Builder and not to my son's bank account, since he should not divert that amount. Is it correct? My wish is he should have a property on his name and to enjoy and permit me to reside in that flat.

Hi,The property since registered in your Son's name it would be deemed to his property.It is your Son's property, So, question does not arise.It is better to prepare and sign a loan document.Indeed, if you want so, you may prepare a gift document for any future anomoly in this regard and may consult an Income-tax practitioner, to assure whether a gift tax to be paid or not.

But I need an expert lawyer's advise to confirm whether this transactions is not falling/attracting under the existing or old Benami Transactions Act, 1988 and on new Benami Transactions (Prohibition) Amendment Bill, 2015?

The Act defines a benami transaction as a transaction where a property is held by or transferred to a person, but has been provided for or paid by another person.

My son is holding/registered the property on his name, whereas father has paid 98% of consideration directly to builder on behalf of his son, on his own willingness.

1) Is my son has all rights on the property having paid only Rs 1.00 lakh.Ans: Yes

2) Is it attract any penalty under Benami transactions under new Benami amendment law?Ans: No as it is within fiduciary relationship

3) Can I treat this amount as loan to my son? Is any loan document to be signed and to register?Ans: I do not understand why this question comes here

4) Can I treat this as Gift to him.Ans: as your wish

5) Is any other taxation issues is arise on this payment of Rs 46.00 lakhs paid to builder on his behalf?Ans: I dont think so

The payment of Rs46.00 Lakhs is out of my retirement & savings funds. I have choosen to pay directly to Builder and not to my son's bank account, since he should not divert that amount. Is it correct? Ans: Yes

My wish is he should have a property on his name and to enjoy and permit me to reside in that flat.Ans: It is between you and your son. You have support of law (Senior Citizenship Act)